In news crossing the tape right now, Citi shareholders have voted down the company’s executive compensation plans at the bank’s annual meeting in Dallas, where Dow Jones reporter Matthias Rieker is covering.

In May, Pandit was rewarded for previously working for a $1 a year with a big raise: a three-part multi-year $16 million retention award.

He took home $15 million for 2011. Apparently shareholders were not pleased.

The say-on-pay vote is nonbinding and Citi doesn’t have to do anything because of it, but it is likely another black eye for Pandit. Citi’s results may have looked good yesterday, but that 1 cent dividend is likely a stickler for investors.

Given at least one big shareholder, Saudi billionaire Prince Alwaleed, had been apparently counting on a dividend to remain happy, the vote might not be a surprise. But say-on-pay rejections are still rare.

In Citi’s proxy statement it says the bank “seeks to balance the need to compensate its employees fairly and competitively based on their performance” and added that its programs aim to “enhance stockholder value through the practice of responsible finance, facilitate competitiveness by attracting and retaining the best talent, promote meritocracy by recognizing employee contributions, and manage risk through sound incentive compensation practices.”

The proxy added that compensation for the executives named in the proxy “reflects Citi’s current results and prospects for growth.”

At the meeting Tuesday in Dallas, 45% of votes cast approved the proposal set forward by the board of directors, and mandated by law, to approve executive compensation for five of the top executives whose compensation must be disclosed.

Since the law counts absentee votes as rejections, 55% disapproved of Citi bankers’ pay. A Citi spokeswoman said 75% of votes were cast.

The result, though preliminary, “is a serious matter,” Citi Chairman Richard Parsons said at the end of the meeting. “The board of directors takes this matter seriously,” and the directors will consult with shareholder groups to determine their concerns.

Comments (5 of 5)

What can one expect when the thief executive officer has a name like "bandit?"

1:44 pm April 17, 2012

Investor wrote :

jwy, the last thing we need is more regulations from congress. thats the craziest thing i have heard today!

made me laugh, thanks!

12:54 pm April 17, 2012

jwy wrote :

The way to curb unreasonable executive compensations is for the Congree to pass a bill, to require all publicly traded companies clearly separate the roles of CEO and Chairman of the Board. This will be 100 times more effective than anything else in this regard.

12:51 pm April 17, 2012

rodger shinn wrote :

what BS-there are all kinds of competent people to fill these jobs--they get paid enought-they will never get my votes fot this

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